Let us understand Agricultural Loan
Agricultural sectors has highest share of contribution in our GDP. Many livelihoods, SMEs and Industries are dependent on agriculture as their main source of survival. Outsider or the end purchaser cannot easily understand the pain bear by farmer to grow his full grown crop. It’s too hard not only in terms of cultivation but also in terms of capital investment and financial arrangements. Thus timely availability of funds to farmers will play a great role towards their needs like buying a new land, purchasing farm machinery, building storage sheds etc. Many banks and NBFCs offer Agricultural Loan under various programs like Short Term Credit, Long Term Credit and other credit.
Benefits of Agricultural Loan
Farmer financing options offered by many banks and NBFCs supports and guide farmers in all possible aspects of agriculture. Following are the common benefits of the agricultural loan offered by many banks:
- Minimum and simplified documentation.
- As per your income, lender offers flexible loan repayment options
- Lowest interest rates.
- Quick processing.
- No extra charges for loan approval .
- Minimum loan processing fees.
Types of Agricultural Loan
It is a short term loan to fulfill the seasonal requirements of farmers. Farmers face issues while purchasing seeds or sowing or weeding or raising crops due to lack of handy cash. These expense amounts are of recurring nature and are small but for the same farmers faced loan procedures again and again. Thus innovation of Kisan Credit Card fulfilled short term credit needs of farmers without visiting a branch.
Farming is not that much easy as farmer has to bear so many expenses behind the picture. Purchasing of machineries, installing and upgrading irrigation facilities, installation of other necessary technologies requires a great capital. Agricultural term loan is offered for such activities with lowest interest rates and over a long tenure.
Large population amongst farmers in not that much educated and thus they are unable to identify other financial solutions than just borrowing loans. Many farmers have plenty of gold jewellery which is just lying idle in their house or bank locker. Agriculture gold loan is a great option which provides loan to farmers against their gold ornaments. The loan is offered usually over a short tenure ranging from 1 month to 36 months.
